Property OwnershipIntermediateCalifornia Exam

A grant deed in California contains which implied warranty?

AThe grantor will defend against all claims from any source
BThe grantor has not previously conveyed the property to anyone elseCorrect
CThe property is free of all liens and encumbrances
DThe grantor guarantees a clear and marketable title

Why The grantor has not previously conveyed the property to anyone else Is Correct

Answer B: The grantor has not previously conveyed the property to anyone else

A California grant deed carries two implied warranties: (1) the grantor has not previously conveyed the property to anyone else, and (2) the property is free of encumbrances placed by the grantor (except those disclosed). It does not guarantee against defects from prior owners.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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